Segments Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segments Information

6) Segments Information

The principal business of the Corporation is the sale of property and casualty insurance. The profitability of the property and casualty insurance business depends on the results of both underwriting operations and investments, which are viewed as two distinct operations. The underwriting operations are managed and evaluated separately from the investment function.

The property and casualty insurance subsidiaries underwrite most lines of property and casualty insurance. Underwriting operations consist of four separate business units: personal insurance, commercial insurance, specialty insurance and reinsurance assumed. The personal segment targets the personal insurance market. The personal classes include automobile, homeowners and other personal coverages. The commercial segment includes those classes of business that are generally available in broad markets and are of a more commodity nature. Commercial classes include multiple peril, casualty, workers’ compensation and property and marine. The specialty segment includes those classes of business that are available in more limited markets since they require specialized underwriting and claim settlement. Specialty classes include professional liability coverages and surety. The reinsurance assumed business has been in runoff since the transfer of the ongoing reinsurance assumed business to a reinsurance company in 2005.

Corporate and other includes investment income earned on corporate invested assets, corporate expenses and the results of the Corporation’s non-insurance subsidiaries.

Revenues and income before income tax of each operating segment were as follows:

	Periods Ended June 30
	Second Quarter						Six Months
	2015			2014			2015			2014
	(in millions)
Revenues
Property and casualty insurance
Premiums earned
Personal insurance	$	1,137		$	1,102		$	2,250		$	2,178
Commercial insurance		1,345			1,305			2,687			2,605
Specialty insurance		652			656			1,302			1,309
Total insurance		3,134			3,063			6,239			6,092
Reinsurance assumed		(1	)		1			(1	)		1
		3,133			3,064			6,238			6,093
Investment income		328			345			660			696
Total property and casualty insurance		3,461			3,409			6,898			6,789
Corporate and other		8			8			17			18
Realized investment gains, net		20			125			31			241
Total revenues	$	3,489		$	3,542		$	6,946		$	7,048
Income (loss) before income tax
Property and casualty insurance
Underwriting
Personal insurance	$	89		$	45		$	59		$	47
Commercial insurance		148			71			239			182
Specialty insurance		160			140			287			222
Total insurance		397			256			585			451
Reinsurance assumed		3			1			3			1
		400			257			588			452
Increase in deferred policy acquisition costs		28			21			45			34
Underwriting income		428			278			633			486
Investment income		318			336			639			677
Other charges		(7	)		(2	)		—			(4	)
Total property and casualty insurance		739			612			1,272			1,159
Corporate and other		(81	)		(59	)		(143	)		(119	)
Realized investment gains, net		20			125			31			241
Total income before income tax	$	678		$	678		$	1,160		$	1,281